Reliance Fresh is a subsidiary of Reliance Industries focused on operating convenience stores across India. It has over 450 stores nationwide focusing on food and FMCG products. Reliance Fresh uses a supply chain model that sources products directly from manufacturers as well as through a wholesale trading model. It aims for low prices through private label products and bulk purchasing. Future plans include expanding to 800 cities, investing more in agriculture supply chain and research, and providing part-time jobs and training.

1. Sinhagad Institue Of Business
Management
RETAIL MANAGEMENT
Case Study –
RELIANCE

3. Vision
GROWTH
THROUGH
VALUE
CREATION

4. Company Profile :
 Industry: Retail
 Type: Convenience Store
 100% Subsidiary Of
Relaince Industries Ltd
 Chairman & Managing
Director: Mukesh Ambani
 Founded: 30th October
2006
 Headquarter: Mumbai
 453 Stores pan India
 Average Area: 1100-7500
sqft

5. Business Model
Store Size – Small & Medium Store
Merchndise – Food & FMCG Products
Investment Per Store – Rs 5 To 6 Million
Catchment Area – 2 To 3 Sq Km Radius
Market Positioning – Convinence Store

6. Inefficient Agriculture Supply Chain in India
6

7. Reliance Fresh : Supply Chain Model
Model 1: First Reliance Fresh Model
7

8. Reliance Fresh : Supply Chain Model
Model 2: Wholesale Trading Model (WTS)
8

9.  Supply Chain Model

10. Operational Startegy
Branded
Direct Approach To Manufacturer
Private Lable
Backward Integration Strtegy
Local Vendor Developement With Focus On “GOOD
QUALITY AT CHEAP PRICE”
Example : Buying Bakery Prodcuts From Tihar Jail

11. Retail Mix – Reliance Fresh

12. Product Range:ONLY VEGETERIAN
 Fresh Vegetables & Fruits
 Staple
 Processed Food
 Beverages
 Personal & Home Care
 Dairy Products

13. MERCHANDISE DETAILS
Product width:
Fruits, Vegetables, Juices and other FMCG
Products.
Product length:
Fruits and vegetables both Indian and imported are
available.
FMCG Product length:
Personnel & Home care

14. Place:
 Located in small commercial complexes close to Residential
areas
 Observation: Close to cross roads
 Metro & Tier I Cities

15. Pricing:
 Low prized private labels
 Perishable merchandise are put on discount of 20% after 4 pm every day
 Discount on bulk buying
 Revises the rate list sent by the head office.

16. Promotion:
 Main idea – Make bulk purchase
 Discount scheme days – Saturday and Sunday
 Promotions In Local Print Media
 Reliance fresh membership card – Reliance One

17. SWOT Analysis

18. Strength:
 Strong Financial s Of Holding Company & Brand
 Private Label Sale – Reliance Select
 Contract Farming
 Network – 1600 channels in villages
 Backward Integration Strategy

19. Weakness:
 Poor inventory control
 Less Innovative Promotional Scheme
 Lack Of Use Of Advance Of Information Technology
 Lack Of Facilities To Customers like Parking,Compact
Layout etc

20. Opportunities:

Increase In Net Margin

Untapped Rural Market Potential

Sale of Reliance Select products In Open Market

Expansion In Metro & Tier Cities

21. Threats:
 Domestic Competitors like Big Bazar
 Brand Cautious Customers
 Opposition From Unorganized Retailers
 Employee Attrition Rate
 Change In FDI Norms in Retail Sectors

22.  Eg: Banjara hill outlets-sourced directly- vantimamdi, chevella, and
nearby mandals in ranga reddy district.
 Recruiting People – Underprivileged Community
 Biometric Cards – Farmers – Loans upto Rs. 15000
 Training the farmer
 Information centre:
 Increase productivity
 Market rates of different Corps
 Technical Help
 Quality of seeds and fertilizers

23. Future Plans of Reliance Retail Ltd.

24. Future plans:
 Plans to invest Rs 25000 Crore in next 4 year in their retail division
 Train Students and Housewives – Customer care & Quality service
– Part time job
 Every Indian Consumer _ Reliance Consumer
Expansion To 800 cities Pan India
 Focus on Research & Development In Agriculture Sector
 Building Of Financial Institution For Agriculture Sector